Once again, as described below, innocent investors have been scammed out of their life savings by an unscrupulous investment promoter. This did not have to happen. If these folks would have simply known about the Investment Scam Prevention Program it is likely that they would have avoided this tragic financial fate. If you, your parents, or anyone you know, is not an investment professional but is making investments, take the extra step to hire Wittenberg Law to help you prevent investment fraud. You can’t afford not to do it.
Federal authorities have accused a Keith Epstien of Farmington Hills, Michigan, of running a Ponzi scheme in which he conned elderly investors into giving him their money. Allegedly, Epstein used the money he raised to financially support three exotic dancers, pay for his gambling habit, travel and art expenditures, and pay interest to other investors, according to a criminal complaint filed in federal court Monday.
According to the complaint, Epstein, 55, defrauded at least 17 elderly clients out of $7 million by convincing them to liquidate legitimate investments, then falsely promising to invest their money in low-risk investments. Instead, Epstein deposited his clients’ funds into his own accounts and used the money to pay for his nightclub and gambling lifestyle, which included giving exotic dancers signed blank checks to use as they saw fit. He also bought them lavish gifts.
One dancer said she received $8,000 a month from Epstein, who also paid for her rental car and cell phone, according to the complaint. Another dancer said she quit her job in 2005 to be taken care of by Epstein, who gave her between $1,000 to $1,500 per week A third dancer said she received money from Epstein, who also paid for party buses and an extravagant party for her, and he gave her $6,000 for a down payment on a Cadillac.
A review of bank records showed the money Epstein used to support the dancers came from his clients’ investment money.